STATE OF NEW YORK
DIVISION OF HOUSING AND COMMUNITY RENEWAL
OFFICE OF RENT ADMINISTRATION
GERTZ PLAZA
92-31 UNION HALL STREET
JAMAICA, NEW YORK 11433
-------------------------------------X ADMINISTRATIVE REVIEW
IN THE MATTER OF THE ADMINISTRATIVE DOCKET NO.: DJ230187RO
APPEAL OF
GEORGE MALLOUK
RENT ADMINISTRATOR'S
DOCKET NO.: BJ230177OM
PETITIONER
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ORDER AND OPINION GRANTING PETITION FOR ADMINISTRATIVE REVIEW
On October 17, 1989, the above named petitioner-owner timely filed
a petition for administrative review (PAR) against an order issued
on October 4, 1989, by a Rent Administrator (Gertz Plaza)
concerning the housing accommodations known as 74 Gatling Place,
Brooklyn, New York, various apartments, wherein the Rent
Administrator determined that the owner was entitled to a rent
increase based on the installation of a major capital improvement
(MCI).
The Commissioner has reviewed all of the evidence in the record and
has carefully considered that portion of the record relevant to the
issues raised by this administrative appeal.
The owner commenced this proceeding on October 7, 1987, by
initially filing an application for a rent increase based on the
installation of new prime windows at a total cost of $67,536.50.
The Rent Administrator granted the application in part by exempting
certain tenants from paying the rent increase herein since said
tenants were already paying a rent increase for recent window
installations (storm windows or prime windows).
The petitioner challenged the Rent Administrator's exemption of
apartments 1B, 1E, 3A and 6D from the increase herein because said
apartments had storm windows replaced only and therefore, a partial
increase is requested for said apartments. Apartment 1L was the
only apartment to have prime windows replaced prior to the MCI
herein (no new prime windows installed via the MCI herein), and
therefore, the owner is in agreement with the exemption status of
this apartment.
One tenant objected to the owner's petition stating that the
current rent increase (storm windows) was sufficient.
ADMIN. REVIEW DOCKET NO. DJ-230187-RO
In reply to the tenant's response, the owner states that he has
complied with DHCR criteria concerning the rent increase herein;
and that only a partial increase is sought with respect to the
current MCI for certain exempted apartments.
After considering that portion of record relevant to the issues
raised by this petition, the Commissioner is of the opinion that
this petition should be granted.
Rent increases for major capital improvements are authorized by
Section 2202.4 of the Rent and Eviction Regulations for rent
controlled apartments and Section 2522.4 of the Rent Stabilization
Code for rent stabilized apartments. Under rent control, an
increase is warranted where there has been since July 1, 1970, a
major capital improvement required for the operation, preservation,
or maintenance of the structure. Under rent stabilization, the
improvement must generally be building-wide; depreciable under the
Internal Revenue Code, other than for ordinary repairs; required
for the operation, preservation, and maintenance of the structure;
and replace an item whose useful life has expired.
In relevant part, Policy Statement 89-5 states that where the owner
received an MCI rent increase for storm windows and where those
windows were installed fewer than fifteen (15) years prior to the
new replacement windows, then the MCI increase granted will be
based on the cost of the new windows reduced by the original cost
of the storm windows.
The evidence of record in the instant case indicates that
apartments 1B, 1E, 3A and 6D are paying rent increases for
previously installed storm windows which were less than fifteen
(15) years old when replaced. Thus, in accordance with Policy
Statement 89-5, the owner is entitled to receive a rent increase
for said apartments which reflects deductions from the MCI increase
herein (new prime windows) in the amounts established via the
previous increase (storm windows) as presented by the owner in his
PAR.
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ADMIN. REVIEW DOCKET NO. DJ-230187-RO
It is noted that all tenants were afforded the opportunity to
respond to the owner's PAR but only one (1) response was received
in reply thereto with no reference to any error in the owner's
calculations. Thus, the adjusted MCI rent increases for said
apartments are as follows based upon a $6.15 per room, per month
charge:
NO. ROOMS APARTMENT FULL LESS MONTHLY
INCREASE PREVIOUS COLLECTIBLE
HEREIN INCREASE INCREASE
4 1B$24.60 $8.00 $16.60
4 1E$24.60 $5.00 $19.60
3 3A$18.45 $9.00 $9.45
3 6D$18.45 $7.00 $11.45
THEREFORE, in accordance with the Rent Stabilization Law and Code,
and the New York City Rent and Eviction Regulations, it is
ORDERED, that this petition be, and the same hereby is, granted and
that the Administrator's order be, and the same hereby is, modified
to the extent of allowing an adjustment to the MCI rent increase
herein in accordance with this order and opinion; and that in all
other respects, the Rent Administrator's order remains in full
effect.
ISSUED:
____________________
Joseph A. D'Agosta
Deputy Commissioner
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